uhm... geez...
Anyway, it's hard to give advice without knowing which one of you two is right. It sounds to me like you both have wildly differing views on playing RPGs. Personally, I can see things wrong with both of your arguments...
First of all, I think you need to find another group. IME, you can never,
ever tell a group what kind of game you want to DM unless the group also wants to play in that game. If your group is a bunch of hack & slashers who don't enjoy roleplaying you shouldn't expect them to follow along with you as you run an epic, heroic game.
On the other hand, if I walked in and heard some of those character concepts I'd probably be gone in a heartbeat. Not because I think the players are wrong, but because this is obviously not the kind of game that I want to run.
I think everyone here needs to realize that RPGs are supposed to be fun for
everyone involved. The DM needs to make sure that the players enjoy themselves and vice versa. Too many players assume that the DM is there purely for their own enjoyment and forget that it's often not fun to run games where the PCs go off on random rampages. Likewise, DMs don't always stop to think about whether or not the world they've created is one the players will enjoy. You need to compromise, and if you can't then it's time to find a new group.